The plant, reportedly named “SOA HPAL”, has an estimated cost of US$1.91Bn.

According to Indonesia’s investment ministry, PT Vale Indonesia is planning another high-pressure acid leach (HPAL) plant with a capacity to produce 60ktpy Ni-in-mixed hydroxide precipitate (MHP) for use in EV batteries. The plans would represent PT Vale Indonesia’s third project in the country. It is constructing the Pomalaa project for 120ktpy Ni in collaboration with Ford and Huayou with a total investment of US$4.5Bn as well as the 60ktpy Ni Malili project in Sorowako.

Unlike the previous two projects, it is not clear at this stage whether the SOA HPAL would involve Chinese investment, but given Chinese expertise in hydrometallurgically processing Indonesia’s laterites, it is highly likely that there will be Sino involvement.

Given that Indonesia does not, at present, possess a free trade agreement (FTA) with the USA, this nickel would not currently qualify for Inflation Reduction Act (IRA) tax credits. If any Chinese investment were to exceed 25%, it would also disqualify this material from these credits based on the US Department of Energy’s updated foreign entity of concern guidance.  

The development takes the number of HPAL projects planned in Indonesia and being tracked by Project Blue to 19 (excluding multiple phases). According to Project Blue estimates, production of MHP from Indonesia is anticipated to soar to over 700kt Ni-in-MHP by the end of the decade.  

Last month, MIND ID took a controlling stake in PT Vale Indonesia by acquiring an additional 14% share from Vale Canada and Japan’s Sumitomo Metal Mining (SMM) worth US$268M. The divestment is a key condition for PT Vale Indonesia’s permit extension.